Pensions & Auto Enrolment
Under the Pensions Act 2008, every employer in the UK must put their qualifying employees into a pension scheme and, where appropriate, pay contributions. This is called ‘automatic enrolment’.
If you employ at least one person you are an employer and you have certain legal duties. For full details on automatic enrolment please visit The Pensions Regulator website.
Current & Future Contribution Rates
|Date effective||Employer minimum contribution||Staff contribution||Total minimum contribution|
|6 April 2018 to 5 April 2019||2%||3%||5%|
|6 April 2019 onwards||3%||5%||8%|
Please note; you and / or your employees may already have chosen to pay more than the minimum contributions. If your payments are greater than the increased minimum levels, you will not need to pay any more.
What do I need to do now?
Visit the Pensions Regulator website and use the online tool to find more information on what you need to do and by when.
Automatic enrolment is a continuing responsibility for employers, and there are ongoing duties to carry out after your initial staging date.
For example, each time you pay your employees, including new starters, you must assess their age and earnings to see if they need to be put into a pension scheme, and how much you need to pay in.
Every three years you’ll need to put any of your eligible employees who previously opted out, or stopped saving into your pension scheme, back into it. This is called re-enrolment – The Pensions Regulator has information on their website.
How can The Nationwide Payroll Company Help?
As your Payroll Provider we are fully equipped to make these deductions on your behalf and provide all of the necessary reports for you to forward on to your chosen pension provider. In certain circumstances and with certain providers, Nationwide Payroll Company will be able to upload the reports on your behalf directly to the Pension Provider.